Is the prospective Aplus transferee required to execute the current form of the Franchise Agreement?

According to Aplus's 2024 Franchise Disclosure Document, a prospective transferee is required to execute the current form of the Franchise Agreement. Specifically, the transferee and all persons owning any interest in the transferee, if required by Aplus, must execute the Franchise Agreement form that is then being offered to new franchisees.

This new agreement may differ substantially from the original agreement. It may include different Royalty Fee and Marketing Fee rates, as well as other material provisions. The initial term of the new Franchise Agreement will be the same as that provided for in the then-current franchise agreement. All renewal terms will be governed by the then-current franchise agreement, and the territory will remain the same as the territory granted pursuant to the original agreement.

This requirement ensures that all Aplus franchisees operate under the same current standards and terms, which is a common practice in franchising. Prospective transferees should carefully review the current Franchise Agreement to understand any changes in obligations or fees compared to the original agreement. This could impact the profitability and operational requirements of the franchise.